Megawide Construction Corp. said it was given the highest credit rating, with a stable outlook, by credit rating firm Philippine Rating Services Corp. (PhilRatings) for its planned P5- billion bond sale.
Last month, Megawide said it plans to issue an initial P4 billion and another P1 billion for the oversubscription option, in three tenors – three-year (Series C), five-year (Series D), and seven-year bonds (Series E).
Megawide said has appointed PNB Capital and Investment Corp., RCBC Capital Corp. and SB Capital Investment Corp. as the joint issue managers, joint lead underwriters and bookrunners for the fund raising.
Proceeds from the base offer will be used to refinance the company’s existing debt obligations and for other general corporate purposes, while the oversubscription allotment will include business development opportunities, the company said.
Megawide said PhilRatings gave the highest rate for the bond issuance, citing its “solid experience in the construction industry, along with vertically integrated operations, that are seen to complement the government’s infrastructure projects.”
PhilRatings also took note of the company’s expansion projects with the aim of diversifying into less cyclical sources of revenues as well as the “favorable industry outlook and opportunities, backed by the government’s infrastructure projects.”
Megawide closed 2023 with a profit of P269.2 million over revenues of P18.1 billion.